S&P rates Iron Horse Insurance AA-

Standard & Poor's said it assigned its long-term AA- long-term counterparty credit and financial strength ratings to U.S.-based Iron Horse Insurance Co.

The outlook is stable.

"The ratings reflect our view that Iron Horse is highly strategic to its parent, global oil and gas exploration and production company Chevron Corp., under our group methodology criteria," S&P credit analyst Patricia Kwan said in a news release.

The rating on a highly strategic subsidiary is one notch below the group credit profile (the rating assigned to the core operations of a group).

S&P said it views Iron Horse as an integral part of the group's financial and risk-management structure as it plays a significant role in the group's risk-retention strategy.

Partly offsetting these strengths are its relatively weak operating performance and capital adequacy, the agency said.

Iron Horse provides insurance for the onshore/offshore properties of Chevron Corp. and its affiliates, largely outside of the U.S. Integral to Chevron's risk-management strategy, Iron Horse provides its affiliates a means of purchasing insurance covering exposures that Chevron would normally chooses to self-insure, or in jurisdictions where insurance may not be otherwise available.

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